Sunday, May 17, 2009

S&P 500 INDEX - $SPXMonthly chart shows the bulls have been unable to take the market above the 8ema on this timeframe. Index remains below all key moving averages and the down trendline in place.Weekly chart shows that while the index remains above the 8ema on this timeframe. the bears have managed to take back all the bulls' gains the week prior. Current short term resistance is directly above at the 34 ema. Look for continued weakness and a possible retracement of the entire move up off the March 2009 low.

Daily chart shows the bears have managed to take the index back down below its 8ema and below the up trendline in place. Look for continued weakness and a retracement of the whole move up off the March 2009 low. First downside target is the .618 fib retracement level.